What Happens After Filing a Mechanics Lien in California?

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A mechanic’s lien is one of the most powerful tools contractors, supplies, and other professionals have to help them get paid for their work. Knowing the right steps and getting it right are critical however. Any mistakes could make the lien invalid or even subject you to penalties and fines. With the right legal help at your side, you can ensure your claim is validly filed to pursue the payment you’re owed.

At Plumtree & Brunner, LLP, our California construction lawyers help you properly file mechanics liens.

1. Your Lien Is Recorded

Once your mechanic’s lien is recorded with the county recorder’s office, it becomes a public record and immediately clouds the property’s title. This means:

The owner cannot sell the property without addressing your lien
The owner cannot refinance without resolving the lien
The lien becomes leverage to encourage payment

However, a recorded lien does not last forever. California law gives you a limited window to enforce it.

2. You Must Serve the Lien on the Property Owner

After recording the lien, you must serve a copy on the property owner. This step is mandatory. If you fail to serve the lien properly, the lien may be invalid.

Service must be completed:

By certified, registered, or express mail
To the owner’s last known address
Within a reasonable time after recording

Keep proof of mailing as courts may require it later.

3. The Owner May Respond

Once the owner receives notice of the lien, several things may happen:

The Owner Pays or Negotiates

Many owners choose to resolve the lien quickly to avoid delays in refinancing, selling, or continuing construction. You may receive:

Full payment
Partial payment
A settlement offer
A request for lien release

The Owner Disputes the Lien

The owner may claim:

The lien amount is incorrect
The work was defective
You missed a deadline
You were not properly licensed
You did not serve preliminary notice

Disputes do not automatically invalidate your lien, but they may signal that litigation is ahead.

The Owner Files a “Notice of Contest of Lien”

This is important. If the owner files a Notice of Contest, your deadline to enforce the lien drops from 90 days to just 30 days. Missing this deadline will void your lien.

4. You Have 90 Days to Enforce the Lien

If the owner does not pay voluntarily, you must file a lien foreclosure lawsuit within:

90 days after recording the lien, or
30 days if a Notice of Contest is filed

If you miss the deadline, your lien becomes invalid and unenforceable, even if you are owed money.

A foreclosure lawsuit asks the court to:

Order the sale of the property
Use the proceeds to pay your claim
Award attorney’s fees if allowed by contract

Foreclosure is serious, and most owners will try to settle before the case reaches that point.

5. The Owner May Try to Remove the Lien

California law allows property owners to challenge or remove a lien through:

A petition to release an invalid lien
A lien release bond, which transfers the lien from the property to a surety bond
A lawsuit claiming the lien is frivolous

6. Settlement Is Common Before Foreclosure

Most mechanic’s lien claims settle before reaching trial. Settlement may include:

Payment in full
A reduced lump-sum payment
A payment plan
A joint check agreement
A lien release in exchange for funds

7. If the Case Proceeds, the Court Will Decide the Outcome

If settlement fails, the foreclosure lawsuit moves forward. The court will evaluate:

Whether the lien was properly recorded
Whether deadlines were met
Whether the claimant was licensed
Whether the work was completed
Whether the amount claimed is valid

If you win, the court may order the property sold to satisfy your lien.

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8. After Payment, You Must Release the Lien

Once you receive payment, whether through settlement or court order, you must record a Lien Release. Failing to release a lien after payment can expose you to penalties.

Get Help With Mechanic’s Liens in California

Filing your mechanic’s lien is actually just the first step. There are many critical deadlines along the way and legal requirements you must comply with. Navigating this all can be tricky without a construction attorney at your side.

Our team at Plumtree & Bruner, LLP helps you with your California construction law needs. Contact us today for a consultation.

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